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Monday, February 3, 2014

Canberra has said that in a court case top Toyota at its plant in Australia to change efforts to employee terms and conditions, support to cost-cutting at the the country's last remaining automobile manufacturer will intervene.

The unusual legal intervention by Eric Abetz, Minister of labour, comes before a decision of Toyota whether Ford and General Motors Holden unit to follow, by stopping, vehicle construction in Australia due to the high cost of doing business.

Mr Abetz a keynote speech to the Sydney Institute used a warning with the unions and employers about the dangers overly generous pay deals, to undermine the competitiveness of the companies the agreement.

He said "employers and trade unions must be promoted for the cost of their deals to take over".

"If this does not happen, then we run the risk see something like the wages explosion of pre accord era [1970s and 1980s years], if unsustainable wage growth pushed just thousands of Australians unemployed."

Mr Abetz said that the Government would make a written submission to the Court of Justice to support Toyota's proposal, which allowed his workers vote on the changes to working conditions and pay.

Recent decisions to set by Ford and Holden vehicles in Australia in the coming years have stimulated a political debate on wage moderation and the future of manufacturing. The Government is to stop a financial package to commit Toyota, which keep production in the country under pressure from the unions and the opposition, to agree.

Toyota employs 2,500 people at its plant in the vicinity of Melbourne, more than 100,000 cars last year manufactured.

A boom in mining investment has driven wages in Australia and caused in the last decade to strengthen its currency, which it for foreign employers, their businesses on the country has made more expensive.

Unit labor costs rose by more than 60 percent between 2002 and 2013 developed more than in any other country in the OECD, according to a study by the OECD and the ANZ Bank.

"Manufacturers have dealt with the agreed wages in line with inflation at a time when the currency value, crippled. "This was a burden for the traded sector or for foreign direct investment, and for many companies a one-way ticket, no longer in business", Colm Harmon, Professor of Economics at the University of Sydney said.

"The big question is whether production has a role in the country now, and if it can replace agriculture and services such as education," he said.

Toyota checks to see whether it his car factory site in the State of Victoria, can keep open to the construction of a new generation of vehicles to 2017. A decision to close the plant would have employed a devastating impact on the auto parts industry, up to 30,000 people and is to leave the decision to Australia reeling from Ford and Holden already.

The Japanese company is looking to reduce costs in the Australian plant through an amendment to an existing workplace agreement. She made an appeal to a Federal Court ruling in favour of several workers at the factory, the are the changes against.

Mr Abetz said some of the incentive clauses not in the workplace Agreement agreed by Toyota and said it was in the public interest, vote let the workers in the factory to the proposed changes.

The Court is expected to make a decision in March, while Toyota has not specified when it will announce the result of its review of the production.

The Government has not decided whether you offer additional subsidies to try to convince, Toyota, which received State support a$ 72 million in the previous year, to remain in production.